Input Tax Gain and Loss Report for Singapore

Tax Reporting enables compliance with federal regulations by generating statutory reports on incoming and outgoing payments, receivables, payables, and journal details.

You must submit the Input Tax Gain and Loss reports for Singapore using these features. This topic explains feature setup, required master data, transaction entry, and running the reports.

Setup

Complete these steps to set up Input Tax Gain and Loss report for Singapore:

Define daily rates.
Foreign currency transactions (non-SGD) are converted to SGD using an in-house conversion rate.
1. Navigate to Setup and Maintenance and select Manage Daily Rates.
2. In the Daily Rates tab, enter the In-house Conversion Rate in the Currency Rates Manager.
  The Singapore reports can help to track the gain/loss in GST amount using the actual exchange rate used to calculate GST at the time of the transaction, and the In-house Conversion Rate. Use the Create in Spreadsheet feature to create the in-house conversion rates between Singapore Dollars and the currencies of the foreign invoices.
  You can also configure and use the In-house Conversion Rate for foreign currency conversion to SGD.
Set the Tax Reporting Types and Codes.
1. Navigate to Setup and Maintenance and select Manage Tax Reporting Types.
2. Select Setup Tax Reporting Codes and define a Tax Reporting Code.
  For example, set up a tax reporting code for the Singapore tax rates so that you can run reports by Tax Reporting Code across all tax rates.
Set up Tax Rates.
1. Navigate to Setup and Maintenance, and select Manage Tax Rates and Tax Recovery Rates.
2. Assign the Tax Reporting Code to the tax rate that relate to your GST transactions.
3. Assign a Tax Recoverable Account to the ledger for the tax rate codes.
Set up other required entities as necessary.

Invoice Entry

You can create invoices as follows:

Invoice Entry in Payables (Functional Currency of SGD)
In Singapore, most companies operate with SGD as their primary ledger currency. This section describes the invoice entry procedures for such implementations.
Follow these steps to create an invoice:
1. Navigate to Payables Invoices.
2. Search for and select the Create Invoice task.
3. Complete other fields:
  - Domestic Invoices (SGD):
    The Tax Point Date in Singapore is the Invoice Date. However, you may choose to report taxes using other Tax Points that fit your particular business scenario. Domestic invoices must have an Invoice Currency of SGD.
  - Foreign Currency Invoices:
    For foreign currency invoices, enter the Supplier Tax Invoice Conversion Rate in the Tax tab for the invoice. If you don't do this, the report cannot calculate the gain or loss on an invoice and the report output shows Unspecified in the Supplier Conversion Rate column in the report output and the amounts appear as Undetermined. If you encounter this scenario, edit the invoice and enter the value for the Supplier Tax Invoice Conversion Rate and re-run the report.
4. Apply the tax rate code that relates to current Singapore tax rate to the transaction, for example, SG GST Standard Rate.
5. Validate the invoice, and Account and Post to Ledger.
  Invoices that are not validated, accounted and posted do not appear on the report.
Invoice Entry in Payables (Non-SGD Functional Currency)
Some companies in Singapore may operate with a non-SGD primary ledger. For example, USD may be the currency of the primary ledger. In such implementations, the report output shows different information to assist you for your tax returns. This section describes the invoice entry procedures for such implementations.
Follow these steps to create an invoice:
1. Navigate to Payables Invoices.
2. Search for and select the Create Invoice task.
3. Complete other fields:
  - Domestic Invoices (SGD):
    The Tax Point Date in Singapore is typically the Invoice Date. However, you may choose to report taxes using other Tax Point as befits your particular business scenario. Enter domestic invoices with an Invoice Currency of SGD. Make sure that the corporate Conversion Rate is applied on the invoice to convert from SGD to USD (primary ledger currency).
  - Foreign Currency Invoices:
    For foreign currency invoices, enter the Supplier Tax Invoice Conversion Rate in the Tax tab for the invoice. If you don't do this, the report cannot calculate the SGD converted amounts on the invoice and the report output shows Unspecified in the Supplier Conversion Rate column in the report output. The SGD amounts in the report output is Undetermined. If you encounter this scenario, edit the invoice and enter the value for the Supplier Tax Invoice Conversion Rate and re-run the report.
    The SGD amounts can then be determined now you have specified the conversion rate.
4. Apply the tax rate code that relates to current Singapore tax rate to the transaction, for example, SG GST Standard Rate.
5. Validate the invoice, account, and post to ledger.
  Invoices that are not validated, accounted and posted do not appear on the report.

Transaction Entry

This section describes the transaction entry procedures for SGD and non-SGD primary ledgers:

Transaction Entry in Receivables (Functional Currency of SGD)
In Singapore, most companies operate with SGD as their primary ledger currency. This section describes the transaction entry procedures for such implementations.
Follow these steps to create and process transactions for reporting:
1. Create a transaction in Receivables.
2. At the header, set Record Type and Reason (Miscellaneous tab, Regional Information).
3. Set the transaction date.
  In Singapore, the Tax Point Date is the transaction/invoice date. The report only shows the transactions that have a transaction date within the period range.
4. Enter the invoice lines.
  The report shows each invoice line number as a separate row in the report.
5. Enter the tax rate name.
  
  Apply the tax rate code that relates to current Singapore tax rate to the transaction. In this example, the SG GST Standard Rate is applied.
6. Complete, account, and post to ledger. Transactions that are not completed, accounted and posted do not appear on the report.
Transaction Entry in Receivables (Non-SGD Functional Currency)
Some companies in Singapore may operate with a non-SGD primary ledger. For example, USD may be the currency of the primary ledger. In such implementations, the report output shows different information to assist you for your tax returns.
Follow these steps to create and process transactions for reporting:
1. Create a transaction in Receivables.
2. Select the currency transactions:
  - Foreign Currency Transactions
    
    Foreign currency transactions are converted to SGD amounts in the report using the corporate rate setup between SGD and the foreign currency and shows as the Spot Conversion Rate in the report output.
  - SGD Currency Transactions
    
    Domestic SGD transactions are converted to the primary ledger currency amounts in the report using the inverse corporate rate setup between SGD and the foreign currency and shows as the In-house Conversion Rate in the report output. For example, transaction 1457 is a SGD invoice converted to the USD primary ledger currency.
3. Set the transaction date.
  In Singapore, the Tax Point Date is the transaction/invoice date. The report only shows the transactions that have a transaction date within the period range.
4. Enter the invoice lines.
  The report shows each invoice line number as a separate row in the report.
5. Enter the tax rate name.
  
  Apply the tax rate code that relates to current Singapore tax rate to the transaction. In this example, the SG GST Standard Rate is applied.
6. Complete, account, and post to ledger. Transactions that are not completed, accounted and posted do not appear on the report.

Reporting

Generate the Input Tax Gain and Loss report for Singapore:

Navigate to Tools, Scheduled Processes.
Run the report.

The report layout differs depending on whether you run the report for SGD primary ledger currency, or a foreign currency primary ledger. After you have completed and accounted your transactions, they appear in the Input Tax Gain and Loss Report for Singapore.